EXHIBIT 99.1


FOR FURTHER INFORMATION:                 Sandy Fruhman, Media   (713) 207-3123
                                         Melanie Trent, Investors (713) 207-8351


FOR IMMEDIATE RELEASE:                   July 31, 2002


                   RELIANT RESOURCES AFFIRMS STRONG LIQUIDITY
                    POSITION AND SOLID BUSINESS FUNDAMENTALS

HOUSTON, TX. - Reliant Resources, Inc. (NYSE: RRI) reiterated its strong
liquidity position and solid business fundamentals in light of Moody's decision
to change the rating of the company's senior unsecured debt.

"We are disappointed with the Moody's rating action today," said Steve
Letbetter, chairman and chief executive officer. "While we are not surprised
with a downgrade from Moody's in light of current industry conditions and the
pressure on the rating agencies in the current corporate credit environment, we
do not believe that the new rating is appropriate. The rating appears to reflect
a sector approach that fails to recognize significant differences between
Reliant Resources and others in our industry.

"Our combination of a strong Texas retail position, hard assets, and ability to
optimize those assets will continue to provide a solid foundation for the
company and allow us to maintain our commitment to our customers, our
shareholders and our employees," Letbetter added. "While we disagree with the
rating, we recognize the company and the industry are under pressure. As we told
investors during our earnings call last week, we have been taking the steps
necessary to ensure that we can continue to run our business successfully.

"We have stress-tested our business, and we have sufficient accessible liquidity
to meet the financial needs brought on by the change in ratings," continued
Letbetter. Additional liquidity requirements triggered by loss of investment
grade status are estimated at approximately $650 million based on current
commodity prices. The company has approximately $1.2 billion of cash and
available lines of credit to meet its needs. Credit rating downgrades do not
trigger any defaults under the company's or its parent's debt agreements.

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"In addition, we do not anticipate that the downgrade changes our refinancing
prospects with our lenders as we believe that they have also been anticipating
the possibility of a downgrade of the company's senior unsecured rating. We
continue to be confident in our bank refinancing prospects," said Letbetter.

The company reiterated its earnings guidance for 2002 of a range of $1.65 to
$1.85 per share and said the rating change does not affect its proposed spin-off
from Reliant Energy, Incorporated (NYSE:REI).

                           WEBCAST OF CONFERENCE CALL

Reliant Resources has scheduled a conference call for Wednesday, July 31, 2002,
at 1:30 p.m. Central Daylight Time. Interested parties may listen to a live
audio broadcast of the conference call at www.reliantresources.com. A replay of
the call can be accessed approximately two hours after the completion of the
call and will be available until August 14, 2002.


Reliant Resources, based in Houston, Texas, provides electricity and energy
services to wholesale and retail customers in the U.S. and Europe, marketing
those services under the Reliant Energy brand name. The company has more than
21,000 megawatts of power generation capacity in operation, under construction
or under contract in the U.S. and nearly 3,500 megawatts of power generation in
operation in Western Europe. At the retail level, Reliant Resources provides a
complete suite of energy products and services to electricity customers in Texas
ranging from residences and small businesses to large commercial, institutional
and industrial customers. Reliant Resources currently is a majority-owned
subsidiary of Reliant Energy, Incorporated (NYSE: REI). For more information,
visit our web site at www.reliantresources.com.


                                      *****


This news release includes forward-looking statements. Actual events and results
may differ materially from those projected. Factors that could affect actual
results include the timing and impact of future regulatory and legislative
decisions, effects of competition, weather variations, changes in Reliant
Resources' business plans, financial market conditions and other factors
discussed in Reliant Resources' filings with the Securities and Exchange
Commission.

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